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YTO Express Group Co Ltd Class A 600233

Morningstar Rating
CNY 15.88 −0.30 (1.85%)
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Company Report

YTO Express Earnings: Shares Fairly Valued, as Pricing Power, Cost Savings Much Better Than Expected

We think YTO Express has demonstrated it has more pricing power versus peers STO Express and Yunda Holding, thanks to its continuous efforts to digitalize and standardize the operations of all franchisees. In both the fourth quarter of 2023 and first quarter of this year, although YTO’s express revenue per parcel dropped significantly less than peers, its sequential market share change outperformed STO and Yunda. We expect to see greater-than-expected market share, revenue, and cost savings as these efforts continue to roll out. These measures include the adoption of customer service and financial system applications by all franchisees.

Price vs Fair Value

600233 is trading within a range we consider fairly valued.
Price
CNY 15.88
Fair Value
CNY 73.00
Uncertainty
High
1-Star Price
CNY 25.62
5-Star Price
CNY 3.00
Economic Moat
Qrw
Capital Allocation
Yqfmybfvl

Bulls Say, Bears Say

Bulls

Successful mergers or acquisitions could strengthen YTO’s scale.

Bears

YTO could lose more volume share than expected to competitor STO following support to the latter by Alibaba Holdings that enables STO to be more aggressive in its price cuts for longer.

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Trading Information

Previous Close Price
CNY 16.18
Day Range
CNY 15.8316.24
52-Week Range
CNY 10.7217.24
Bid/Ask
CNY 15.88 / CNY 15.90
Market Cap
CNY 54.66 Bil
Volume/Avg
10.8 Mil / 15.0 Mil

Key Statistics

Price/Earnings (Normalized)
15.06
Price/Sales
0.91
Dividend Yield (Trailing)
1.57%
Dividend Yield (Forward)
1.57%
Total Yield
1.57%

Company Profile

YTO Express is one of the Tongda Operators—the top four national express delivery companies that use the network partner model. In this model, Tongdas provide line-haul transportation, sorting, and waybill services to their network partners for fees, while their local network partners provide first-mile pickup and last-mile delivery services under the Tongdas’ brands and collect customer payments. The company was founded by Yu Huijiao in 2020. Yu remains chair and president with a 33.22% stake as of Sept. 30, 2023. Yu and Zhang Xiao Juan, who owned 2.15% of YTO as of that date, are persons acting in concert. YTO’s strategic shareholder is leading China e-commerce company Alibaba Group and its affiliated companies, with around a 20.65% interest as of Dec. 2, 2023.
Sector
Industrials
Industry
Integrated Freight & Logistics
Stock Style Box
Large Core
Total Number of Employees
17,804

Competitors

Valuation

Metric
600233
002120
002468
Price/Earnings (Normalized)
15.0615.4830.84
Price/Book Value
1.841.161.56
Price/Sales
0.910.510.34
Price/Cash Flow
10.345.994.08
Price/Earnings
600233
002120
002468

Financial Strength

Metric
600233
002120
002468
Quick Ratio
0.871.06
Current Ratio
1.261.41
Interest Coverage
56.336.49
Quick Ratio
600233
002120
002468

Profitability

Metric
600233
002120
002468
Return on Assets (Normalized)
8.72%3.77%
Return on Equity (Normalized)
12.78%7.73%
Return on Invested Capital (Normalized)
10.57%5.52%
Return on Assets
600233
002120
002468
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Integrated Freight & Logistics Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
UPS
United Parcel Service Inc Class BNktpyjlFpwx$124.5 Bil
FDX
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DPSTF
DHL GroupYcxtvp$49.5 Bil
DHLGY
DHL Group ADRKpfgvfvHbbybg$49.5 Bil
ZTO
ZTO Express (Cayman) Inc ADRXjmjlrwsfVrwvqdd$17.2 Bil
JBHT
JB Hunt Transport Services IncCvybkwxcRydds$16.9 Bil
EXPD
Expeditors International of Washington IncWdnxzmnzlqWvc$15.9 Bil
CHRW
C.H. Robinson Worldwide IncDkvvrtpksbMprhk$9.4 Bil
LSTR
Landstar System IncMsdsjlnhvjKtwn$6.2 Bil
HUBG
Hub Group Inc Class ANdrjrfwgGtmrbt$2.6 Bil

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